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Full-Text Articles in Social and Behavioral Sciences
Romania's Recovery After The Economic Crisis, Claudiu Doltu, Marcel Duhaneanu
Romania's Recovery After The Economic Crisis, Claudiu Doltu, Marcel Duhaneanu
Journal of Global Initiatives: Policy, Pedagogy, Perspective
Compared with other countries in the region, Romania reacted slowly to the recent economic and financial crisis. After eight years of strong growth (200 1-2008), Romania's economic contraction was among the most severe in the region. Significant macroeconomic corrections occurred in 2010 but at the cost of compressing the household consumption and the investment. Downward adjusting the domestic demand by rapidly decreasing nominal wages and increasing taxes also discouraged businesses by increasing uncertainty. Partially, the macroeconomic policy worked well in 2010. However a steady growth in the next years will depend on the following three conditions: 1) reducing the transaction …